This is a case to exemplify how disruptive open source and co-creation can be as part of your business model. Presented by Dries Buytaert, founder of Drupal, the largest open source project on the planet. This is part of the workshop on Game Changing Business Models - itself part of the series on Startup Secrets, by Michael J Skok on how to get competitive advantage as a startup. Michael's slides are the framework for the workshop, and are NOT self contained. For fuller coverage of the slides, visit Michael's website http://mjskok.com/

1. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi
Hi Harvard innovation lab
#innovationlab @mjskok #startupsecrets www.mjskok.com
START UPCase in point: Drupal
SECRETS
An insider’s guide to unfair competitive advantage
Open Source, Co-Creation
Disruptive Business Models to build Value
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
1

2. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
For context and more information:
Dries Buytaert @Dries
Founder Drupal, Acquia
http://buytaert.net , https://www.acquia.com
and as part of the overall Business Model session
http://www.mjskok.com/resources/business-model
2

3. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Startup Secret: Co-creating Value
• Be Open and Extensible (eg Software APIs)
– Enabling external multipliers to your value
– Building on yourself
– Eating your own cooking
– Being your own customer
• Open Source
– Leverage through community
– Make the customer the product manager
• Scratching their own itch
3

4. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Startup Secret: Co-creating Value
• Be Open and Extensible (eg Software APIs)
– Enabling external multipliers to your value
– Building on yourself
– Eating your own cooking
– Being your own customer
• Open Source
– Leverage through community
– Make the customer the product manager
• Scratching their own itch
4

5. Dries Buytaert
Founder and project lead Drupal
Co-founder and CTO Acquia
http://buytaert.net :: @Dries

6. Meet Dries 12 years ago when he started work on Drupal
...
Student dorm in Antwerp
where I started Drupal
Assembly books
Chess board
Collection of stamps
Compiler books
All furniture is from IKEA

7. 1 out of 50 websites in the world
10,000+ modules
300,000+ downloads/month
1.5M unique visitors/month
FREE

8. 71 of the world's top 100 universities use Drupal

9. Open Source is a software
license
1. Freedom to run the program
2. Freedom to study the
program
3. Freedom to modify the
program
4. Freedom to re-distribute the
program

10. Drupal wins because it is less expensive
… yet technically superior!

11. Open Source
Collaboration

12. Open Source is not just a software license,
it is also a development model
1,000 people contributed to Drupal 7

13. Open Source
Collaboration
Community

15. Open Source
Collaboration
Community
Innovation

16. Technically superior

17. Drupal and Open Source is a
catalyst for
- “Creative destruction”
Changes how we develop
“Creative Destruction”
software
- Changes how we build
websites
- Changes a multi-billion
dollar industry
- Open Source enables
business model
innovation J
oseph Schumpeter
Joseph Schumpenter,
- Bonus: allows to do well, Economist, 1883-1950
and do good

18. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Drupal, Open Source
Multiplies AND Leverages CORE
•Multipliers: •Levers:
• Added functionality • Community
• Community reach development
• Community marketing
Multipliers
Levers
CORE
18

19. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
Summary - Dries, Drupal
• Disruptive Business Model – as significant as
Technology
• Focus on CORE differentiation
• Multiply and Leverage it with innovation as
exmplified:-
– Co-Creation
– Open Source
– Community
– Partners
– And much more = see next slide for info… 19

20. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi www.mjskok.com
#innovationlab @mjskok #startupsecrets
For more information:
See the full resource on Business Models at
http://www.mjskok.com/resources/business-model
20

21. Harvard innovation lab : Michael J Skok : Startup Secrets : Business Model
Hi
Hi Harvard innovation lab
#innovationlab @mjskok #startupsecrets www.mjskok.com
START UPCase in point: Drupal
SECRETS
An insider’s guide to unfair competitive advantage
Open Source, Co-Creation
Disruptive Business Models to build Value
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
21